Universal Insurance (UVE) Financials

Universal Insurance Holdings, Inc. (NYSE:UVE) has shown mixed financial performance over the last four years from Q2 2022 through Q1 2025, with some positive trends in revenues and net income but also some volatility in earnings and cash flow figures.

• Total revenue has generally trended upward from $292 million in Q2 2022 to $395 million in Q1 2025, indicating growth in the company's core insurance business and other income streams.
• Premiums earned, the main revenue driver, increased from about $277 million in Q2 2022 to $356 million in Q1 2025, supporting the revenue growth.
• Net income showed improvement over the period, with positive net income of $41.4 million in Q1 2025 compared to earlier quarters where losses were reported, showing recovery and potential operational improvements.
• Diluted earnings per share rose to $1.44 by Q1 2025, up from periods with losses per share, reflecting enhanced profitability on a per-share basis.
• Cash and cash equivalents increased overall, reaching $398 million in Q1 2025 after some fluctuations, signaling improved liquidity and financial strength.
• Property & Liability Insurance Claims fluctuated each quarter, averaging around $240 million to $330 million, reflecting the cyclical nature of insurance claims and potentially affecting earnings volatility.
• Other operating expenses remained fairly stable in the $70 million to $90 million range, showing consistent cost management but limiting cost reduction impact.
• The company experienced several quarters of net losses, especially in 2022 and parts of 2023, with the largest loss of about $72 million in Q3 2022, highlighting periods of operational challenges.
• Cash flows from operating activities have been volatile, with large positive inflows in some quarters but negative or much weaker cash flow in others, indicating irregular cash generation from core operations.
• Certain quarters saw relatively high expenses related to repurchase of common equity and dividend payments, which could pressure cash reserves and reduce financial flexibility.

In summary, Universal Insurance Holdings has shown recovery and growth in recent quarters with increasing revenues and net incomes, alongside improving earnings per share and liquidity. However, the company’s history of earnings volatility, irregular cash flows, and significant expenses related to shareholder returns present risks that investors should consider. Continued monitoring of underwriting results and cash flow stability will be key to assessing ongoing performance.